On Monday, January 16, 2023, the exchange rate between the naira and the US dollar depreciated to trade at an average of N742/$ on the black market. This is according to information provided by parallel market dealers to RateCaptain, the naira decreased in value by 0.54% in comparison to the N738/$1 recorded on January 13, 2023.
On the other hand, the Investors and Exporters window recorded a decrease in the value of the naira on an average of N462/S, decreasing by 2.60 percent from the previous trading average of N452/$ on the 12th of January, 2023.
Rate Captain Analyst recommended that the nation start seriously considering medium- to long-term solutions, which would mean creating an environment (i.e., improving electricity and infrastructure) that encourages export diversification, especially for enterprises that are export-led in manufacturing, commodities, and agro-processing, among other industries. “Services industries, including health, education, and information technology, must also be taken into consideration.” These measures will help boost the value of the naira against other currencies.
FOREIGN RESERVE
According to data from Nigeria’s central bank (CBN), the first two trading weeks of 2023 recorded an upward trend in the foreign reserve. The gross foreign reserve as of the first trading day of 2023, which was January 3, 2023, amounted to $37.06 billion and increased to $37.21 billion on January 12, 2023. The CBN recorded a $136.74 million increase in the second trading week of 2023.
CRYPTOCURRENCIES
Bitcoin has maintained its steady increase at an average of $19,800 after increasing by 15.7% over the course of the past trading week. This has been the highest performance recorded since March 2021.
Ethereum, the second-largest cryptocurrency, recently traded unchanged at $1,427 from the beginning of the second trading week of January 2023. Over the previous week, ether’s price increased by 12.9%. The Ethereum blockchain merger last year became the focal point of irrational speculation in the cryptocurrency markets. Ethereum’s price stands firm after its two-week-long rally without any signs of reversal. However, Ethereum is currently facing some significant hurdles that could trigger its reversal, so there is a need for investors to exercise caution.
The Bitcoin Cash price surged nearly 10% on Friday, January 13, 2023, as traders assessed the market impact of potential network changes ahead of the Bitcoin Cash protocol. Bitcoin cash broke above resistance levels of $108 to as much as $125 in the past few days of trading.
